Significant Unaffiliated Stockholder Delivers Letter To CopyTele, Inc. Board Of Directors

NEW YORK, May 13 /PRNewswire-FirstCall/ -- John D. Reynolds, a significant unaffiliated stockholder of CopyTele, Inc. (OTC Bulletin Board: COPY), announced today that he has sent a letter dated May 13, 2010 to CopyTele's Board of Directors.  

The full text of the letter follows:

Dear Members of the Board of Directors:

I currently own 2,000,000 shares of Common Stock of CopyTele, Inc. ("CopyTele" or the "Company").  As a significant stockholder of CopyTele, I am extremely dissatisfied with the current direction of the Company.  After discussions with other large stockholders, it appears many of the Company's stockholders also share my views.  Over the past several months, I have made numerous attempts to privately reach out to the Board of Directors ("you" or the "Board") to discuss my concerns regarding CopyTele's dismal financial performance and its unwillingness and failure to communicate with its stockholders.  Since you have been wholly unresponsive, you have left me with little choice but to send this letter publicly in the hope that the Board will promptly implement meaningful steps to enhance stockholder value, including the immediate appointment of three independent representatives to the Board.  

For years, the Company's stockholders have suffered from an entrenched Board that lacks independence, accountability and proper oversight, all of which are necessary functions of proper corporate governance.  It is time for a change in the Company's Board and management team.  "New blood" is needed now to reinvigorate CopyTele, especially when you consider the following:

• None of the Company's three directors are "independent" under the rules applicable to the Nasdaq Stock Market;
• Denis A. Krusos, 82, has served as Chairman of the Board and Chief Executive Officer since November 1982;
• Henry P. Herms, 64, has served as Chief Financial Officer and Vice President -- Finance since November 2000 and as a member of the Board since August 2001;
• George P. Larounis, 81, an old friend of Mr. Krusos, has served as a member of the Board since September 1997, prior to which he served as a consultant to the Company;
• The Company does not have a standing audit, nominating or compensation committee; and
• Management is left with the ability to determine its own compensation.

The Company's 2009 proxy statement provides that director candidates for the Company's Board "should be free from conflicts that would impair their ability to discharge the fiduciary duties owed as a director to CopyTele and its stockholders" and that the Company "will consider directors' independence from our management and stockholders."  Yet, not one of you is truly independent.